The performance of a business is determined from its profit or loss, balance sheets, and other financial reports. This could be recorded on a monthly, quarterly, or yearly basis.
So, any company, whether an SMB or big-sized, is highly dependent on its transactional reports, which in general terms is referred to as “accounting.” Hence, this department analyzes, summarizes, and provides financial management solutions to a company.
Services like auditing, tax preparation, compliances, payroll processing, and bookkeeping are some of the various aspects of accounting systems. For years, companies of all scales have relied highly on accounting firms to keep up with their expenses and determine their business-oriented financial goals.
However, there has always been added time and manual effort consumption to prepare the holistic data for a month, quarter, or yearly basis. Can we have an automated solution to these challenges?
Embracing Digital Technology Tools and Implementing Automated Processes
Most companies are embracing digital technology tools and implementing automation processes to overcome the above limitations and quicken the accounting procedure.
This has enabled businesses with more visibility to check their upcoming expenses based on their current transactions and get the desired accounting reports and financial graphs generated in much less than usual.
So, does this mean that technology will put an end to accounting? Well, though this may be a bit debatable, accounting firms have a long way to go.
Technology Will Strengthen Accounting Firms Rather Replacing Them
Of course, technology integration has shown some ultimate scopes in business beyond conventional accounting practices. However, according to leading financial experts, accounting firms should consider digital tools as a business opportunity rather than a competition.
Accountants can learn and adopt digital technology tools to stay and survive in the continuously shifting tech-driven environment.
Use of Cloud, AI, and Automation by Accounting Firms
The technology is ever-evolving, with a new methodology being inducted within the system every now and then. Cloud, Artificial Intelligence (AI), and Automation, for instance, are some of the latest and widely used technologies in multiple sectors. The Accounting industry, too, has benefitted a lot by implementing these technologies. Here are how these technologies and tools can prove to be highly useful.
- Cloud Solutions – This technology helps with centralized storage of data and improves communication and collaboration, thus lowering the extra costs. Further, this enhances data quality and makes it easy to share, access, capture, and analyze the data sets.
- Automation Technology & Tools – It minimizes manual labor and human error and helps the accountants to concentrate more on their tasks requiring strategies. Overall, the deployment of automation helps to alleviate efficiency and cost-effectiveness.
- Artificial Intelligence (AI) Solutions – This technology helps accountants to convert analytical data into precise financial planning and reporting. Using AI techniques and tools, accounting professionals can also create helpful financial management solutions, ensuring the growth and maturity of the client’s business operations.
Adding Other Modern Technologies Further Boosts the Potential Value of Accounting
Let us face it. The more, the merrier. Employing more tools and techniques that help in developing a financial plan for the growth of the business is always a cherry on the cake. Isn’t it?
Apparently, apart from the ones listed above, accounting professionals also have the option to use some more of the current-era technology to design a superlative financial plan with respect to the ongoing transactions of the company. These include –
- Virtual Augmented and Mixed Reality Tools – These may seem surprising, but they are for real. No matter how well these tools have been used in the field of science and other sectors, they can be utilized for strategic financial planning. Accounting professionals have better and enhanced scopes to analyze, explore, and share improved data sets using these tools.
- Blockchain Technology & Tools – It will not be an exaggeration to mention that this technology has gradually boomed and has become highly notable over recent years. Not only in the supply chain, but blockchain can also work wonders for accounting and financial professionals. These professionals can use this technology for process development, auditing, records management, and streamlining many more activities through a distributed general ledger.
- Business Intelligence (BI) Tools – Whether it comes to data mining or data visualization, Business Intelligence tools pave the way to the structured financial planning of a company. The technology involves the effective use of transactional data collection and helps to understand various facets of the business, such as demographics, product sales, and financial performance, to name a few.
Furthermore, some other aspects of utilizing these technologies and tools also include backing business with predictive analysis. This technology is based on precise data visualization and advanced statistical analysis.
As one of the most popular quotes goes – “Necessity is the mother of invention,” the companies adhering to, adopting, and implementing these technologies only to cut short the time consumption for accounting tasks. However, it is a fact that any medium of business is highly dependent on accounting firms for robust and effective financial management.
Long story short, deploying technologies will just act as a catalyst in financial planning rather than removing or terminating the services of accounting firms. The only thing that the firms will need is to understand these technologies better and utilize them for a better-intended output.